Most experts believe that overall e-commerce business will increase exponentially. E-commerce market size in India was estimated to be USD 14 Billion in 2012. It is estimated to reach USD 74 billion by 2017. With the advent of 3G, the internet on mobiles is becoming fast, and will facilitate E-Commerce using mobiles. India has 100 million internet users while 600 million mobile users will expedite the ecommerce business. Currently the following are the most famous E-commerce sites in India.

Yatra.com

IRCTC

makemytrip.com

Flipkart.com

Homeshop18

Snapdeal.com

Fashionandyou.com

Myntra.com

Jabong.com

Justdial.com

Naukri.com

Of these, only three of the stocks are listed in bourses- Makemytrip.com, Justdial.com and Naukri.com. While Makemytrip.com is listed in Nasdaq the other two are listed in Indian bourses. Interestingly these stocks are over valued compared to their sales value. But analysts refuse to give a sell call owing to the future prospects of the ecommerce business. Naukri.com had reported a sale of Rs 123 crores in the December quarter but is trading at over 100 P/E. With the run away success of Just dial many unlisted stocks in this space are getting abundant funding at exorbitant valuation. The current valuation of these stocks only reminds the 2000 year the dot.com bust. We will have to check if the valuations of the ecommerce businesses can sustain in the years to come.

Coming back to the market, we have written much about the market in our earlier newsletters. The market is poised to go up albeit with some corrections. Let us check out how to play the market in our next edition.